Title
Pre-Encoded Smart Card Contract Extension (Ordinance S-45342)
Description
Request an ordinance authorizing the City Manager, or his designee, to enter into a month-to-month extension of Contract 137796 with Valid USA (Valid) to continue provision of Pre-Encoded Smart Card Fare Media to the Public Transit Department during the transition to the new contractor. Further request authorization for the City Controller to disburse funds in an amount not to exceed $70,000.
Report
Summary
The Public Transit Department utilizes a Pre-Encoded Smart Card fare media for use on the regional Scheidt & Bachmann (S&B) fare collection system currently in use. The smart cards are used on the transit bus fare boxes and ticket vending machines and are encoded with the fare type, customer name, validity start date and validity end date. These cards must be compatible with the S&B fare collection system being utilized.
Contract 137796 was awarded to Valid USA in 2013 following a competitive process. The contract currently expires on Jan. 31, 2019. The Public Transit Department issued IFB PTD19-001 on Aug. 17, 2018 and, following recommended approval by the Aviation and Transportation subcommittee, the recommended award to ABCorp NA, Inc. (ABCorp) was authorized by Council on Dec. 12, 2018.
All of the current smart cards for bus transit use in the City of Phoenix were produced from the existing Valid contract. The new contractor ABCorp and the Department are working with S&B on the transition to production of the new smart cards encoded compatibly with the fare collection system. To ensure full due diligence is completed, the Department believes it prudent to seek authorization for extension of Valid's contract in the event additional time is needed. Therefore, the Department requests Council authorization to extend the current Valid contract on a month-to-month basis up to six months, to be exercised by the Public Transit Director if it is in the City's best interest to do so.
Contract Term
The extension will be on a month-to-month basis up to six months through July 31, 2019.
Financial Impact
The aggregate contract value for the extension, if needed, shall not exceed $70,000. Funds are available in the Public Transit Department operating budget Transportation 2050 fund.
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.